NOV Inc. (NOV)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,712,000 | 1,717,000 | 1,708,000 | 1,834,000 | 1,989,000 |
| Total stockholders’ equity | US$ in thousands | 6,168,000 | 5,096,000 | 4,997,000 | 5,210,000 | 7,778,000 |
| Debt-to-equity ratio | 0.28 | 0.34 | 0.34 | 0.35 | 0.26 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,712,000K ÷ $6,168,000K
= 0.28
NOV Inc's debt-to-equity ratio has shown a fluctuating trend over the past five years. The ratio stood at 0.32 at the end of 2023, indicating that the company had $0.32 in debt for every $1 of equity. This represents a decrease from the previous year's ratio of 0.39.
The downward trend in the debt-to-equity ratio from 2022 to 2023 suggests that NOV Inc has reduced its reliance on debt financing relative to equity, which may indicate improved financial stability and lower risk. However, it is important to note that the ratio had increased slightly in the years leading up to 2022.
Overall, while the recent decrease in the debt-to-equity ratio is a positive sign, further analysis of the company's overall financial health and capital structure is necessary to fully assess its financial leverage and risk management strategies.
Peer comparison
Dec 31, 2023